UK downloaders want ISP-based music flatrate

Universal's Total music initiative may not be the iTunes killer it wants to be, but it definitely has reignited the discussion about music price points and sale vs. rental approaches.

UK-based "music service provider" Playlouder chimes in now with some interesting market research related to the idea that ISPs should pay for the music subscription and trading of their customers. Playlouder paid a market research company to ask 800 Britons whether they'd like to pay a flat fee to their ISP and in return get unlimited access to music via downloads, streaming and file sharing.

"75% agreed that the MSP service is "a great idea"
61% agreed "it is unique"
32% said that they "have been waiting for a service like this'"

Asked how much they'd pay for such a service, most people replied that 10 British Pounds (about 20 weak US dollars) per month sound like a reasonable price. 70 percent also responded that they'd consider switching to another ISP to get access to such a service. Sounds like a good strategy to get new customers if you don't want to participate in the Telco-financed dumping price race.

Of course one should take all those results with a grain of salt, since they were directly paid for by Playlouder, and the company doesn't reveal the exact methodology of the research. And finally, people might be disappointed to find out that Playlouder's own internet and music access package is in fact not as unlimited as it wants to be. The company's current beta test is lacking music from most of the major labels. So far, only EMI signed up - and promptly forced Playlouder to protect their music with DRM.

Comments

Thanks for this report - we at Playlouder should really be more open about our progress. We have announced licences with EMI and Sony BMG, and hope to make other announcements soon. There's a limited catalogue in the beta as we still have a lot of systems to test, but everyone is welcome to come and have a play with our website - you just won't be able to download unless you have an ADSL line from us.

The DRM applies to the music we distribute from our own servers, and yes, it has been imposed on us against our wishes by the major labels. However we still monitor and account to the record labels for music which our subscribers transfer over our network. This is a compromise, but one we feel we can live with as we can really say to our users that all transfers of licensed music are permitted.

We also block transfers of licensed music out of our network to subscribers of other ISPs, in order to prevent BT, Tiscali, Orange, Virgin and the rest getting a free ride on our music services and our licences.

The research we commissioned was done for us by a very reputable company - EMR. We tried to make it as rigourous as we could. It would not help us to lie to ourselves about the prospects for the business.

Janko - if you are asking me to comment on specific deals then you won't be surprised that I can't. But if you are asking me if our subscribers will get letters from music industry lawyers for sharing licensed music then the answer is emphatically no. They won't get sued. We have done the deals.